5 Countries Set to Cash In on Demographics

A falling dependency ratio often gives way to big growth

Mexico

For the next pick, you just have to travel south of the border. As I explained the first time I broke down the “demographic dividend,” Mexico’s population profile looks just right for growth.

Its dependency ratio has been falling since it bulged in the ’70s and is set to bottom out just before 2030. That makes now — around two decades before the reversal — a prime time to play the region.

The easiest way to get exposure: Snatch up the iShares MSCI Mexico Index Fund (EWW) — which has gained 10% during the past year despite a rough start to 2013.

Of course, Mexico is also home to lots of direct plays as well, including Fomento Economico Mexicano (FMX), a top-five pick so far in InvestorPlace’sBest Stocks of 2013 contest. Remember, though, the real upside will likely come longer-term … not necessarily this year.